Here in NZ, we have a lot of Hydro and geothermal power stations. Our govt have discussed the idea of introducing their own "Carbon Tax" for every X of energy used, electrical, oil-based or otherwise. This appears to be a blatant ignorance of the fact that things like electric trains powered by electricity-from-hydro are not actually contributing to CO2 levels at all.

Neither. This is a holdover from the 70's, when nuclear power replaced oil-fueled power generation. There's no oil-fueled commercial power generation anymore, save for emergency backup power and that kind of thing.